Gold Testing 61.8% Fibonacci Retracement – Safe Haven Appeal Kicks In
Arslan Butt • 1 min read
The bullion market is finally gaining some bullish momentum after the series of events which has increased the level of uncertainty in the market. For instance, the U.S. President Donald Trump warned the WTO (World Trade Organization) that “we’ll be doing something” if the U.S. isn’t treated properly. This came in response to EU’s remarks that U.S. automotive tariffs would damage its own vehicle industry.
Additionally, Canada’s slapped back C$16.6 billion worth tariff on U.S. goods in retaliation for U.S. tariffs. Interestingly, the U.S. Chamber of Commerce criticized President Trump’s approach to global trade disputes. In fact, they published a statement that claimed tariffs applied by Trump and retaliation by its allies would backfire badly on the American economy.
On the technical side, gold has completed the 61.8% retracement at $1,246. At the same time, 50 periods EMA is extending a solid resistance to gold near $1,246. We can expect a drop in gold prices only below $1,246. Whereas, the violation of $1,246 can lead prices towards $1,251.
Gold – XAU/USD – Trade Idea
Let’s keep an eye on $1,246. The idea is to take buying positions above it for 30/40 pips. While sell entries will be preferred below $1,246 to target $1,242. Good luck and stay tuned for more updates.